Fitch affirms EDS

Fitch Ratings affirmed Electronic Data Systems Corp.'s BBB- senior unsecured debt following the company's announcement that it will no longer make a $1 billion offering of equity. The outlook is stable.

Fitch said it still believes that EDS's long-term senior unsecured rating remains investment-grade due to the company's improved liquidity position from recent asset sales, consistently positive free cash flow and the belief that bondholder protection measures have bottomed yet remain solid.

Also considered is the expectation of continued debt reduction, stable revenue base, the size and scale of the company and the stabilizing of a majority of the problem contracts from 2002 and 2003, Fitch said.

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